Recurring Deposit (RD) Calculator

If you want to build a substantial savings corpus but do not have a large lump sum to invest upfront, a Recurring Deposit (RD) is the perfect financial instrument. Our RD Calculator helps you project the exact maturity amount you will receive by making small, regular monthly investments.

What is a Recurring Deposit?

An RD allows you to deposit a fixed amount of money every month into a bank or post office account for a specific time period. It essentially forces financial discipline by acting like an EMI in reverse—you are paying yourself first. The bank pays interest on each monthly deposit based on the time remaining until maturity.

How is RD Interest Calculated?

Unlike a Fixed Deposit where the entire principal earns interest for the full tenure, RD interest is slightly more complex. The first month's deposit earns interest for the full tenure, the second month's deposit earns interest for the tenure minus one month, and so on. This is why the total interest earned on an RD is slightly lower than an FD of the equivalent total amount.

Our calculator uses the standard quarterly compounding formula utilized by most major banks to give you 100% accurate maturity projections.

RD vs. SIP (Mutual Funds)

• Risk: RDs offer guaranteed, fixed returns with zero market risk. SIPs are linked to the stock market and carry risk.
• Returns: Because of the lower risk, RD interest rates are lower than the historical long-term returns of equity SIPs.
• Flexibility: The monthly deposit amount in an RD is strictly fixed. Missing a payment often attracts a penalty. Mutual fund SIPs are more flexible, allowing you to pause or change amounts without penalty.